A prudent speculator never argues with the tape. Markets are never wrong, opinions often are. Jesse Lauriston Livermore More Quotes by Jesse Lauriston Livermore More Quotes From Jesse Lauriston Livermore The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor. Jesse Lauriston Livermore emotional business stupid Just remember, without discipline, a clear strategy, and a concise plan, the speculator will fall into all the emotional pitfalls of the market - jump from one stock to another, hold a losing position too long, and cut out of a winner too soon, for no reason other than fear of losing profit. Greed, Fear, Impatience, Ignorance, and Hope will all fight for mental dominance over the speculator. Then, after a few failures and catastrophes the speculator may become demoralised, depressed, despondent, and abandon the market and the chance to make a fortune from what the market has to offer. Jesse Lauriston Livermore cutting ignorance fall To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate. Jesse Lauriston Livermore signals patient giving Wall Street never changes, the pockets change, the suckers change, the stocks change, but Wall Street never changes, because human nature never changes. Jesse Lauriston Livermore wall greed money Don't take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don't be an impatient trader. Jesse Lauriston Livermore investing action littles Remember this: When you are doing nothing, those speculators who feel they must trade day in and day out, are laying the foundation for your next venture. You will reap benefits from their mistakes. Jesse Lauriston Livermore investing foundation mistake Men who can both be right and sit tight are uncommon. Jesse Lauriston Livermore bull-markets uncommon men The stock market is never obvious. It is designed to fool most of the people, most of the time. Jesse Lauriston Livermore obvious fool people Instead of hoping he must fear and instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. Jesse Lauriston Livermore investing loss may They say you never grow poor taking profits. No, you don't. But neither do you grow rich taking a four-point profit in a bull market. Where I should have made twenty thousand dollars I made two thousand. That was what conservatism did for me. Jesse Lauriston Livermore twenties should-have two The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. Jesse Lauriston Livermore investing doe brain It is foolhardy to make a second trade, if your first trade shows you a loss. Never average losses. Let this thought be written indelibly upon your mind. Jesse Lauriston Livermore mind loss average Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market your game is to buy and hold until you believe that the bull market is near its end. To do this you must study general conditions and not tips or special factors affecting individual stocks. Jesse Lauriston Livermore swings games believe Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start. Jesse Lauriston Livermore investing real commitment It isn't as important to buy as cheap as possible as it is to buy at the right time. Jesse Lauriston Livermore right-time important Every once in a while you must go to cash, take a break, take a vacation. Don't try to play the market all the time. It can't be done, too tough on the emotions. Jesse Lauriston Livermore vacation play trying Without faith in his own judgment no man can go very far in this game. That is about all I have learned - to study general conditions, to take a position and stick to it. I can wait without a twinge of impatience. I can see a setback without being shaken, knowing that it is only temporary. Jesse Lauriston Livermore knowing games men I did precisely the wrong thing. The cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit. Jesse Lauriston Livermore games loss average In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be. The thing to do is to watch the market, read the tape to determine the limits of the get nowhere prices, and make up your mind that you will not take an interest until the prices breaks through the limit in either direction. Jesse Lauriston Livermore break-through mind moving The desire for constant action irrespective of underlying conditions is responsible for many losses on Wall Street even among the professionals, who feel that they must take home some money every day, as though they were working for regular wages. Jesse Lauriston Livermore wall loss home
